Microsoft Reports First Quarter Results--Revenues from Dynamics Show Decline

Microsoft reported that its business division, which includes the Microsoft Dynamics product line, suffered an 11% decline in revenue from Q1 2009, down from $4.9 billion to $4.4 billion and a 10% decline in operating revenue, down from $3.1 billion to $2.9 billion. The 10Q indicated more specifics on the business market:

"Business revenue decreased $161 million or 4%, primarily reflecting a decline in licensing the 2007 Microsoft Office system to transactional business customers and a 6% decrease in Microsoft Dynamics revenue, offset in part by growth in multi-year volume licensing agreement revenue. The growth in multi-year volume licensing agreement revenue primarily reflects recognition of deferred revenue from previously signed agreements."

CRM revenue appears to be the one Dynamics-related high point for the company, with "double digit" revenue growth, a positive exception that has been touted before.

Overall, Microsoft

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